Errors happen, technology insurance is needed

While Murphy's Law might be an extreme scenario, it is a mindset that small to medium-sized business owners should still prepare for. Running a company is not necessarily always riddled with mishaps and unforeseen events, but assuming that nothing will ever happen can be extremely costly in the long-run.

This example can be seen when it comes to data breaches. Without the right technology insurance and types of liability policies, businesses could be facing a lengthy and expensive recovery process should information be compromised.

According to the eighth annual Ponemon Global Cost of a Data Breach study, 35 percent of data breaches last year could be attributed to negligence or human error and 29 percent was tied to system glitches.

"Data breaches normally aren't about bad people," Larry Ponemon, founder and chairman of the institute that bears his name, told PC World. "It's normally about good people making mistakes or business processes that fail."

Why would a hacker want to go after my small company you ask? A Harvard Business Review contribution piece explained that more cyber criminals have banded together to form groups that attack organizations of all sizes. Lots of types of confidential data - medical records, passwords, birthdays, Social Security numbers - can lead to major profits for criminals. Having the mindset that your company is too small or insignificant to be on the radar or any hackers is dangerous.

Many businesses keep customer and employee personal information stored. What happens if that information is compromised?

Partnering with commercial insurance specialists who understand your company and the area in which it is located can help you find the best technology insurance for your daily operations.